In the classical model, fiscal policy has no demand-side effects on output or employment
a. True
b. False
A
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Total reserves of private banks are
A) federal reserve notes. B) all customer deposits. C) deposits held at the Fed and vault cash. D) the minimum amount banks need to hold against time deposits.
According to your text, when people talk about "the economy", they probably have in mind
A) the stock market. B) commercial society in general. C) the marriage market. D) black markets.
Bill owns "Bill's Home of Blues" a store that specializes in selling CDs and DVDs of blues musicians of the 1960s and 1970s. Bill took out a loan from his bank to pay for his store and its initial inventory
Bill pays the bank $900 per week for his loan. The $900 bank payment A) is a short-run implicit cost. B) is a fixed cost. C) is a variable cost. D) is a long-run implicit cost.
Monetary policy that is focused on slowing down the economy is known as __________ monetary policy.
a. loose b. free c. expansionary d. contractionary